London families to shoulder nearly a quarter of all inheritance tax bills
Families in London and the South East coughed up nearly half of all UK inheritance tax receipts, amid a continued climb in property prices.
Londoners paid the greatest share of the unpopular levy, at 23 per cent, narrowly ahead of the South East at 22 per cent.
This was followed by the South West, but there was a large gap between the regions, with the South West paying just 11 per cent, according to analysis of the latest available data by TWM Solicitors.
In comparison to the South, the North West pays just five per cent of all inheritance tax (IHT) bills, while Yorkshire pays four per cent.
Wimbledon-based estates were among those paying the highest IHT bills, averaging £566,000, while Guildford averaged £302,000.
But it was Kensington families who unsurprisingly found themselves slapped with the heftiest bills, averaging the UK’s highest of £1.4m each, while Richmond Park reported the highest number of estates liable for the tax, with 184 located in the leafy neighbourhood.
Rise in property prices
Rising property prices were a key driver of the high bills, with many Southern families being drawn into the IHT net as their house value increased over time.
Duncan Mitchell-Innes, partner and deputy head of private client at TWM Solicitors, said: “Inheritance tax is no longer a concern just for the very wealthy – it’s increasingly hitting ordinary families as property prices rise.
“Families in London and the South East are shouldering nearly half of the nation’s IHT burden.”
The analysis also uncovered that widowed women are disproportionately affected, accounting for 34 per cent of all IHT bills, compared to just 22 per cent for their male counterparts.
This comes as women have a longer life expectancy than men and many spouses fail to plan or update wills correctly prior to death, leaving valuable allowances lost.
Mitchell-Innes added that the government should recognise that widowed women “are hit hardest by the tax”.